1 NZD to USD New Zealand Dollars to US Dollars Exchange Rate

what is nzd

When the Fed intervenes in open market activities to make the U.S. dollar stronger, for example, the value of the NZD/USD cross could decline, due to a strengthening of the U.S. dollar when compared to the New Zealand dollar. NZD/USD is the abbreviation for the New Zealand dollar and U.S. dollar currency pair. A price quote https://www.fx770.net/ for this currency pair tells the reader how many U.S. dollars are needed to purchase one New Zealand dollar. The kiwi also circulates in Tokelau, Pitcairn Islands, Niue, and the Cook Islands in addition to being the official currency of New Zealand. New Zealand bill denominations include $5, $10, $20, $50, and $100.

However, overall, NZD is considered a stable currency due to the strength of the New Zealand economy and its outlook. Tourism is a strong economic driving force for New Zealand, so when tourism is doing well in the country, the currency will tend to be stronger. Other economic factors, such as growth rate, GDP, unemployment, and inflation are strong and, therefore, lead to a strong currency. In 1934, the Reserve Bank of New Zealand was established, becoming the only supplier of banknotes.

Agriculture is a major factor in the New Zealand economy; more than two-thirds of the exports are agricultural. So if milk prices are on the rise, the New Zealand economy is likely to improve and traders may price up the currency in anticipation. Tourism is another staple of the New Zealand economy, so as visits to New Zealand become less expensive, the economy will be expected to improve and the currency may appreciate. The currency usually has a bird on one side of a banknote or coin as well as an important historical figure of New Zealand. The strength of a currency tends to fluctuate so the strength of the NZD may not always be so strong.

In 1999, a new design for the New Zealand Dollar was released in an attempt to modernize, with the new bills being made of polymer. Since 2006, there have been no coins under the value of five cents and the value of cash transactions are rounded. The New Zealand dollar is colloquially referred to as the “kiwi,” a flightless bird native to New Zealand that appears on the country’s $1 coin.

Create a chart for any currency pair in the world to see their currency history. These currency charts use live mid-market rates, are easy to use, and are very reliable. These percentages show how much the exchange rate has fluctuated over the last 30 and 90-day periods. These are the lowest points the exchange rate has been at in the last 30 and 90-day periods. These are the highest points the exchange rate has been at in the last 30 and 90-day periods. Investopedia does not provide tax, investment, or financial services and advice.

Central Bank Rates

The New Zealand dollar contributes greatly to the total global exchange market—far in excess of New Zealand’s relative share of population or global GDP. Other factors affecting the NZD are dairy prices and tourism numbers. New Zealand is one of the world’s biggest exporters of whole milk powder. This means that if milk prices are on the rise the New Zealand economy is likely to be doing well, which will push up the currency.

  1. The carry trade is one of the most popular trading strategies in the currency market.
  2. Since 1999, the New Zealand government has produced polymer or plastic versions of the New Zealand dollar, which has made the note more secure against counterfeiting.
  3. Although New Zealand’s been effectively self-governing since the early 1900s, it is still, as recognized in the country’s Constitution, “Her Majesty’s Government,” as a member of the British Commonwealth.
  4. In 1999, a new design for the New Zealand Dollar was released in an attempt to modernize, with the new bills being made of polymer.

Although sometimes denoted as NZ$, the kiwi dollar is more commonly shown with a simple $ sign. It floated on March 4, 1985, at an initial exchange rate of 44 cents against the U.S. dollar. The financial markets have since determined the currency’s value with the unit typically ranging between 39 and 88 cents against the greenback. In 1967, notes were introduced in denominations of $1, $2, $5, $10, $20 and $100, with all except the $5 replacing their pound predecessors. $1 and $2 notes were discontinued in 1991 after being replaced with coins. It took another 30 years before the Reserve Bank replaced the currency of pounds, shillings, and pence with actual dollars and cents.

Exchange rate

Our currency rankings show that the most popular US Dollar exchange rate is the USD to USD rate. These are the average exchange rates of these two currencies for the last 30 and 90 days. The coin denominations currently in circulation in New Zealand’s currency are 10 cents, 20 cents, 50 cents, one dollar, and two dollars. Previously existing denominations of 1 cent, 2 cents, and 5 cents were phased out of circulation between 1988 and 2006. After a nearly 10-year long study by a government committee, the decision was made to shift the country’s currency to a decimal system. The New Zealand Parliament passed the Decimal Currency Act in 1964, officially transitioning to the new dollar currency in July 1967.

what is nzd

Tourism accounted for about 3% of the country’s gross domestic product (GDP) in March 2022, a decrease from 5.5% before the COVID-19 pandemic. In 1986, New Zealand adopted Raphael Maklouf’s new portrait of the Queen. The 1c and 2c coins were last minted for circulation in 1987, with collector coins being made for 1988. The coins were demonetised on 30 April 1990.[19] The lack of 1c and 2c coins meant that cash transactions were normally rounded to the nearest 5c (10c from 2006), a process known as Swedish rounding.

After a three-month public submission period that ended on 4 February 2005, the Reserve Bank announced on 31 March that it would go ahead with the proposed changes. The changeover period started on 31 July 2006, with the old coins usable until 31 October 2006.[19] The old 50c, 20c, 10c and 5c pieces are now no longer legal tender, but are still redeemable at the Reserve Bank. Our currency rankings show that the most popular New Zealand Dollar exchange rate is the NZD to USD rate.

Convert US Dollar to New Zealand Dollar

So as the number of visitors to New Zealand rises, the economy does well and the currency appreciates. Check live rates, send money securely, set rate alerts, receive notifications and more.

The information is presented without consideration of the investment objectives, risk tolerance, or financial circumstances of any specific investor and might not be suitable for all investors. Investing involves risk, including the possible loss of principal. The NZD/USD is also affected by factors that influence the value of the New Zealand dollar and/or the U.S. dollar in relation to each other and other currencies. The interest rate differential between the Reserve Bank of New Zealand and the U.S. Federal Reserve (Fed) will affect the value of these currencies when compared to each other.

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Since 1999, the New Zealand government has produced polymer or plastic versions of the New Zealand dollar, which has made the note more secure against counterfeiting. In addition, the new polymer composition has increased the longevity of the note. The obverse side of each coin is imprinted with an image of Queen Elizabeth II.

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